Australian businesses face mounting energy costs, tighter margins, and ambitious decarbonisation targets. In 2022–23, businesses consumed 154,439 GWh of electricity at a cost of approximately $20.2 billion (Source: EnergyAustralia). Upfront capital constraints often stall efficiency upgrades, even when they promise 10–30% annual savings.
Government grant programs bridge this funding gap by covering 50–100% of eligible project costs. By coupling grant-funded upgrades with robust maintenance, organisations can slash energy bills, extend asset life, and boost operational resilience. Power Maintenance examines two key programs for you — the Small Business Energy Efficiency Grants and the Community Energy Upgrades Fund — providing eligibility details, real data, case studies, and strategic insights from our MD, Nick Halaris.
Why Energy Grants Matter for Business Efficiency
Efficiency upgrades drive measurable returns, but require capital investment. Grants accelerate payback and reduce project risk:
- Bill Reduction: The SME Retail Tariff Tracker found annual electricity bills rose 8% in the past year for businesses consuming 20,000 kWh, with South Australian SMEs paying $10,310 and Tasmanian SMEs $5,900 on average (Source: energyconsumersaustralia.com.au).
- Consumption Profiles: Australian SMEs use an average of 3,650 kWh per quarter (14,600 kWh/year) according to Momentum Energy. Targeting the top five loads: HVAC, lighting, refrigeration, heating, and IT, can yield 20–30% savings.
- National Impact: Grants support the federal goal of 43% emissions reduction by 2030, transforming small gains into large‑scale decarbonisation.
When maintenance and monitoring are baked into upgrades, equipment performance is optimised over its lifespan, delivering compounding savings beyond the initial efficiency gain.
Small Business Energy Efficiency Grants (SME Grants)
The Australian Government’s Energy Efficiency Grants for Small and Medium Enterprises program aims to assist businesses in reducing energy consumption and emissions through equipment upgrades and energy efficiency initiatives. (Source: DCCEEW)
Round 1 (2023) – CLOSED
- Funding Pool:
$16 million - Grant Range:
$10,000–$25,000 - Funding Coverage:
Up to 100% of eligible project costs - Eligibility:
Businesses with 1–199 employees, operating for at least 24 months, holding an ABN, and demonstrating project-based energy savings - Application Period:
March 6, 2023 – April 19, 2023 (Source: minister.dcceew.gov.au)
Round 2 (2024) – CLOSED
- Funding Pool:
$41.2 million - Grant Range:
$10,000–$25,000 - Funding Coverage:
Up to 100% of eligible project costs - Eligibility:
Same as Round 1 - Application Opening:
Staggered over five consecutive business days starting February 22, 2024, based on the state or territory where the project is located (Source: DCCEEW website).
Next Round (2025) – Expected based on 2025 Budget Announcement
- Funding Pool:
$56.7 million (estimate) - Grant Range:
Up to $25,000 per business (estimate) - Eligibility:
Businesses with 1–199 employees, operating for at least 24 months, holding an ABN, and demonstrating project-based energy savings (estimate) - Read more at energy.gov.au
These grants aim to assist over 2,400 businesses in upgrading or replacing inefficient equipment and implementing other energy efficiency activities, thereby helping to lower energy use and improve energy efficiency.
Applications are assessed on a first-come, first-served basis until funding is exhausted in each jurisdiction. For detailed guidelines and application procedures, businesses should refer to the official website: business.gov.au.
State‑Level SME Energy Programs
To maximise funding, businesses should layer federal grants with state schemes.
Past examples below of state energy schemes offered in the last few years in Australia:
- South Australia: Grants $2,500–$50,000 (50% co‑funding) for projects of $5,000-$100,000 ex GST.
- New South Wales (SME Energy Efficiency Grant): $10,000–$25,000 at 100% funding; total pool $16 million; Round 1 closed 2023. (Source NSW Small Business Commissioner)
- Queensland (QBEST Rebates): 50% rebate up to $12,500 on eligible equipment (min spend $8,000, max $25,000) under a $35 million program; applications closed Sep 2024 (Source: Energy and ClimateEnergy and Climate)
- Victoria (Sustainability Victoria Rebates): Up to $50,000 for lighting, HVAC, and process controls; combined with energy and materials savings support (Source: Energy.gov.au)
- Tasmania (BEES): Supports customers with >150 MWh annual consumption to finance efficiency and electrification projects; various rebate and loan options (Source: Energy.gov.au)
Mapping all available grants against an energy audit ensures maximal co‑funding and the shortest payback. Some energy grants have a tight deadline, so be sure to cross-check when applications close.
SME Case Studies
1. Brisbane Café Upgrade
- Grant: $20,000 for LED and HVAC controls
- Annual consumption: 120 MWh
- Outcome: 30% cut in lighting & cooling costs; payback under 2 years.
2. Adelaide Manufacturing Plant
- Grant: $25,000 for variable‑speed drives on compressors
- Annual consumption: 1,200 MWh
- Savings: $45,000/year; 400 tonnes CO₂ avoided.
3. QLD Farm Business
- Grant: $15,000 for real‑time monitoring and efficient pumps (via Energy Efficiency Grants Round 2)
- Annual consumption: 80 MWh
- Benefit: 25% reduction in pump energy use; enhanced process visibility and early fault detection qff.org.au.
Recipients credit Power Maintenance’s end‑to‑end support, from audit to application to installation, for swift approvals and seamless delivery. Combined, these projects save over $95,000 annually and abate more than 1,200 tonnes of CO₂.
Community Energy Upgrades Fund (CEUF)
The $100 million Community Energy Upgrades Fund co‑funds local government energy projects:
- Round 1 (21 Dec 2023–30 Apr 2024): $50 million to 58 councils, from 165 applications (Source: DCCEEWEnergy.gov.au).
- Round 2 (4 Mar–13 Jun 2025): $50 million available; applicants ineligible from Round 1 may re‑apply (Source: DCCEEW).
Grant range: $25,000–$2.5 million, covering up to 50% of eligible costs. Eligible bodies must hold an ABN and manage or own the project site at application.
CEUF Round 1 Insights
Of the $50 million awarded:
- Electrification projects: $30 million (60%)—notably pool heating and building heat pumps.
- Solar & battery storage: $8 million (16%).
- Efficiency upgrades: $7 million (14%).
- Total applications: 165; successful: 58 councils.
- State allocations: NSW (17 councils, $15.3 M), VIC (15 councils, $23.9 M), QLD (7 councils, $4.5 M), SA (7 councils, $2.3 M), WA (5 councils, $2.8 M), TAS (5 councils, $674 k), NT (2 councils, $580 k) (Source: pv magazine Australia.
CEUF Project Highlights
- Manly Andrew Boy Charlton Aquatic Centre (NSW): $1 M for heat‑pump and new energy efficiency boilers systems pool heating & BMS integration; 40% gas use reduction; $120k/year savings.
- Casey City Council (VIC): $1.2 M for solar carpark canopy, battery storage & LED field lights; 60% grid draw reduction; improved storm resilience.
- Bass Coast Shire (VIC): $10,100 for community backup generator at Kernot General Store, ensuring service continuity during outages. Power Maintenance Energy can also assist in demand response program for network charges with the right consultant.
Each project drives local jobs, cuts emissions, and serves as a replicable model for other councils.
Integrating Grants with Maintenance Strategy – Insight by Energy Expert Nick Halaris
“Grant programs are catalysts, but true value emerges when upgrades are woven into a holistic maintenance strategy,” says Nick Halaris, MD of Power Maintenance Energy.
“We synchronise grant‑funded installations with preventive maintenance schedules, ensuring new assets are optimised, tracked, and serviced to deliver peak performance. Looking ahead, digital twins and AI‑driven analytics can further enhance energy management, turning data into actionable insights that unlock continuous improvement. Councils should prepare compelling, data‑driven proposals that demonstrate community benefits, resilience gains, and measurable emissions abatement. Our role is to guide you through every step, from opportunity identification to outcome reporting.”
By aligning grant pursuits with asset management plans, businesses and councils unlock extended equipment life, minimise unplanned outages, and secure deeper long‑term savings.
Tips for a Successful Grant Application
- Conduct an Audit First: Pinpoint high‑ROI interventions and set baselines.
- Prepare Documentation Early: ABN, financials, technical quotes, and site consents.
- Align Scope Tightly: Match project activities to grant‑specific eligibility lists.
- Engage Experts: Leverage energy consultants for technical viability and compliance support.
- Plan Co‑Funding: Secure cash or in‑kind contributions to meet state matching rules.
- Define KPIs: Quantify expected savings and emissions reductions for post‑project reporting.
- Monitor Policy Updates: Grant guidelines evolve; stay informed on new rounds and criteria.
Conclusion & Next Steps
Government grants unlock vital funding to transform energy efficiency and electrification projects from cost hurdles into strategic investments. By combining federal and state schemes with proactive maintenance and digital monitoring, businesses and councils can secure deep bill savings, strengthen asset resilience, and accelerate decarbonisation.
Ready to capitalise on grant opportunities and elevate your energy strategy?
Contact Power Maintenance for a free consultation on grant applications, project delivery, and integrated energy and asset management solutions.
